Denver Investment Real Estate

#589: 5 Biggest Mistakes Colorado Landlords Make With Security Deposits


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Colorado landlords face major security deposit changes on January 1, 2026—including new 14-day documentation requirements, elimination of automatic cleaning fees, and stricter wear-and-tear definitions. Miss one deadline and face automatic 3x treble damages that can turn a $2,000 dispute into a $6,000 judgment plus attorney fees.

Chris Lopez hosts this critical legal webinar with attorney Wes Wollenweber (26 years landlord-tenant litigation experience), Key Renter CEO Brandon Scholten, and Director of Operations David Mitchell. This expert panel breaks down exactly what landlords must know about Colorado security deposit laws before 2026, including the 5 biggest mistakes that forfeit your right to withhold any deposit money.

Wes reveals how Colorado’s hyper-technical 30-60 day accounting deadline means being even a few days late can cost you the entire deposit. The panel discusses real court cases, including a Denver judge’s surprising ruling that “every fridge gets dented” and why treble damages are awarded far less often than most landlords fear. You’ll learn the critical difference between normal wear and tear versus tenant damage, how family size and pets change judicial expectations, and why text messages may not count as legal written notice.

In This Episode We Cover:
  • January 1, 2026 changes under Colorado security deposit laws: 14-day documentation requirement, automatic cleaning fee elimination, and expanded wear-and-tear definitions
  • How missing the 60-day deadline triggers automatic $6,000+ treble damage exposure (even if you’re only 2 days late)
  • Why judges interpret carpet and paint damage differently based on tenant family size, pets, and property age
  • The two ways tenants win treble damages—and how to avoid both legal traps
  • Real court case: Refrigerator dent dispute where judge ruled “all fridges get dented” (what this means for your deductions)
  • Cost breakdown: Small claims vs mediation vs trial for deposit disputes
  • Why text and email documentation may fail the “exact written statement” legal standard
  • Section 8 tenant damage: When housing authorities terminate vouchers (rare but it happens)
  • Whether you self-manage a duplex or oversee a 50-unit portfolio, this episode provides the legal clarity and documentation strategies you need to comply with deposit regulations and avoid costly penalties in 2026. Don’t let one missed deadline or poor documentation cost you thousands in treble damages.

    Watch the YouTube Video
    https://youtu.be/25Jhil6BEJw?si=2RkegR2y1ZjJjqNh
    Timestamps

    00:00 – Welcome & Guest Introduction
    01:58 – Why Security Deposits Matter in Late 2025
    04:19 – Understanding Colorado’s 30-60 Day Deadline
    09:36 – Treble Damages Explained: When Landlords Face 3x Penalties
    10:40 – Normal Wear & Tear vs Tenant Damage
    12:30 – Carpet, Paint & Picture Holes: What Judges Award
    16:17 – How Family Size Changes Wear & Tear Standards
    20:50 – Small Claims vs Mediation vs Trial: Cost Breakdown
    26:24 – January 1, 2026 Law Changes: What Landlords Must Know
    30:23 – Section 8 Tenant Damage: Who Holds Accountability?
    32:38 – Real Refrigerator Dent Case: Judge’s Surprising Ruling
    38:45 – The 14-Day Documentation Requirement
    41:23 – 5 Biggest Mistakes Landlords Make with Deposits
    43:42 – Text & Email Communication: Do They Count as Notice?
    49:18 – Property Walk Invitation & Portfolio Health Audits
    50:29 – When to Call an Attorney: Expert Advice

    Connect with our Guests

    Brandon Scholten: [email protected]

    • LinkedIn: Brandon Scholten
    • Website: https://keyrenterdenver.com/
    • Links from Podcast
      • Portfolio Health Audit + Connect with Keyrenter
      • Colorado Revised Statute 38-12-103
      • HB 25-1249 Full Text
      • Denver Landlords Digest
      • Who is Keyrenter?

        Keyrenter Property Management Denver provides rental solutions for homeowners and real estate investors in the metro area who are interested in transforming their properties into passive income. It offers various services, from property marketing and thorough applicant screening to tenant placement and 24/7 maintenance services. Keyrenter Denver’s team of experts can take the clients’ burden of managing their rental off their hands so they can get back to what matters to them.

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        Denver Investment Real EstateBy Chris Lopez - Denver Investment Broker